S&P: Big Banks Could Pay Over $100B in Mortgage Legal Costs; Well Positioned For Now, But Expect More Suits
December 5, 2013
Expect the largest U.S. banks to continue to feel the effects of the mortgage implosion as they pony up over $100 billion to get out from under their legacy mortgage litigation issues, according to an analysis by Standard and Poor’s. Since 2009, S&P noted that the big banks – Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo – together have paid or set aside more than $45 billion for mortgage representation-and-warranty issues and have incurred some $50 billion in combined legal expenses. This does not include...
The creation of a U.S. sovereign wealth fund could grease the skids for an end to the conservatorships of Fannie Mae and Freddie Mac.
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